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Sep 18, 2014

Detroit art museum will sue if city’s bankruptcy plan not approved

DETROIT (Reuters) – The Detroit Institute of Arts is prepared to sue to prevent the sale of its collection if Detroit’s plan for exiting bankruptcy is not approved, the museum’s chief operating officer told U.S. Bankruptcy Court on Thursday.

When Detroit filed for the largest-ever U.S. municipal bankruptcy 14 months ago, the museum began preparing for possible litigation to keep its art works from being sold to pay city creditors, museum COO Annmarie Erickson told the court.

Sep 17, 2014

Judge pauses Detroit’s bankruptcy trial again

DETROIT (Reuters) – U.S. Bankruptcy Judge Steven Rhodes ordered a week-long break in Detroit’s bankruptcy trial on Wednesday, giving the last major objector to the city’s restructuring plan time to rework its case.

The hearing will be adjourned from Friday and reconvene on Monday, Sept. 29. It was also placed on hiatus last week for three days while the city applied the finishing touches to a settlement with another holdout creditor, Syncora Guarantee Inc [SYCRFS.UL].

Sep 16, 2014

Court’s expert witness on Detroit bankruptcy qualified to testify: judge

DETROIT (Reuters) – An expert witness hand-picked by the federal judge overseeing Detroit’s historic bankruptcy case will testify on the feasibility of the city’s debt adjustment plan without restrictions, the judge ruled on Tuesday.

U.S. Bankruptcy Judge Steven Rhodes said Martha Kopacz, a senior managing director at Phoenix Management Services in Boston, is qualified to give her expert opinion, noting that her “specialized knowledge will help the court to understand the

Sep 15, 2014

Detroit reaches bankruptcy deal with fiercest creditor

DETROIT (Reuters) – Detroit has reached a settlement with bond insurer Syncora Guarantee Inc, its fiercest opponent in its historic bankruptcy case, a lawyer for the city said on Monday.

David Heiman of law firm Jones Day told U.S. Bankruptcy Judge Steven Rhodes that Syncora and the city “have laid down their swords.”

Sep 12, 2014

Detroit end in sight as deals leave FGIC last major bankruptcy holdout

DETROIT (Reuters) – With key players in Detroit’s historic bankruptcy case locked in marathon mediation sessions, the pressure is on bond insurer Financial Guaranty Insurance Co., the last major holdout creditor, to settle with the city.

Judicial mediator Gerald Rosen has ordered the city and some of its major creditors including FGIC to keep talking until they come to an agreement. Another deadline looms outside of the court process: Kevyn Orr, the city’s emergency manager, is expected to end his term on Sept. 29.

Sep 11, 2014

Detroit bankruptcy trial on hold after landmark insurer deal

DETROIT, Sept 10 (Reuters) – A federal judge has delayed
until Monday the landmark trial on Detroit’s plan to exit
bankruptcy, as the city neared a deal with bond insurer Syncora
Guarantee Inc, one of its most formidable hold-out creditors.

Syncora had argued it had been short-changed compared with
other creditors. As part of the deal, Syncora will drop its
objection to the restructuring plan, which could clear the way
for the plan to win swift approval from U.S. Bankruptcy Judge
Steven Rhodes.

Sep 11, 2014

Detroit bankruptcy trial delayed until Monday by U.S. judge

DETROIT (Reuters) – A federal judge has put a landmark trial on Detroit’s plan to exit bankruptcy on hold until Monday, as the city neared a deal with bond insurer Syncora Guarantee Inc, one of its most formidable hold-out creditors.

Syncora had argued it had been short-changed compared to other creditors. If approved, the deal will see Syncora drop its objection to the restructuring and the trial – which is studying the feasibility of Detroit’s plan to exit bankruptcy – could get a swift approval from U.S. Bankruptcy Judge Steven Rhodes.

Sep 10, 2014

U.S. judge delays Detroit bankruptcy trial until Monday

DETROIT (Reuters) – A federal judge on Wednesday put the landmark trial on Detroit’s plan to exit bankruptcy on hold until Monday, as the city neared a deal with one of its most formidable hold-out creditors.

Bond insurer Syncora Guarantee Inc and the city, after reaching an agreement in principle, requested late on Tuesday that the trial be delayed until Friday.

Sep 10, 2014

Syncora, Detroit reach deal in principle over city bankruptcy

DETROIT Sept 9 (Reuters) – Detroit and one of its last
hold-out creditors, Syncora Guarantee Inc, have reached an
agreement in principle over the city’s plan to adjust its debt
and exit bankruptcy, according to a federal court filing on
Tuesday.

The city and the bond insurance company asked the U.S.
Bankruptcy Court to suspend an ongoing confirmation hearing on
the plan until Friday so they can “address certain conditions
and logistics.”

Sep 9, 2014

Detroit, counties reach deal over water, sewer authority

DETROIT (Reuters) – Detroit reached a deal with three Michigan counties over regional water and sewer services that could drop the counties as objectors to the city’s plan to adjust its debt and exit bankruptcy, officials announced on Tuesday.

The deal between Detroit and Oakland, Wayne and Macomb counties creates a regional water and sewer authority, but allows the city to maintain control of its local system, Mayor Mike Duggan said at a news conference. It has the support of Michigan Governor Rick Snyder and the city’s state-appointed emergency manager Kevyn Orr, he added.